In an effort to inform our stakeholders about the issues we face as a District specific to our operations, the Indian Hill School District welcomes you to MEET THE CEO/CFO. In this three-part video series, Superintendent Kirk Koennecke and Treasurer Mick Davis discuss important factual information about the needs identified by community committees and the impact of the operational portion May 4, 2021 combined levy.
VIDEO TWO: District Fiscal Management
The District has managed our finances conservatively and with a focus on stretching each dollar to provide a high-quality education to students at a great value to residents. The Indian Hill School District tax rate remains the lowest in Hamilton County.
The last operational levy for the District was on the ballot in 1993; the Board did not renew this levy when it expired. The last facility project was in front of the voters in 2001.
The District also did a great job managing the last bond issue and has structured the refinancing of bonds to achieve taxpayer savings of $8.5 million. That savings for residents comes in the form of reduced millage paid toward the bonds. In addition, a significant share of what residents pay on this bond expired at the end of 2018 – reducing the bond debt and providing our residents a savings of $304 annually on a $500,000 home. We will see an additional 1.4 mills of existing bonds expire in 2027, again lowering taxpayer payments.
Interest rates on a bond make a difference in savings over time for taxpayers.
When the Board of Education voted to go on the ballot the assumed rate was 3.75%. Based on current rates (checked April 22) the District bond issue could have an all in interest rate under 3%.
This is an unguaranteed potential
savings of approximately $11,700,000 in interest costs over the life of the financing (as compared to the same issue at 3.75%) for a $77 million, 30-year borrowing at 3.00%.
“I would say now might be one of the best times in history to borrow,” said Indian Hill Treasurer Mick Davis. “These rates will not stay this low forever.”
To be clear: Even at lower interest rates it is typical for the county auditor to start collections at the ballot millage estimate (2.97 mills). The way savings will be taken are over time as the millage declines over time.